Yes, apparently it has all completely changed....again! So much for foreigners having the right to rent out their property under the same rights as Croatians - we thought it would be equal once they joined the EU but yet again, Croatia have moved the goal posts and come up with something else to make it difficult for us.
We were renting through a company which we set up, have recently gone to expense and time of changing everything to have categorisation in our own name with the intention of closing the company only to find out that all non-residents (this is how they are getting around it) now have to operate their tourist rentals as a business.
Personally, I think we will just give up on the renting aspect; it hasn't been financially worth it by the time we've paid the Accountant and the exhorbitant company costs. We were really hoping it would be easier now and we could pay the flat bedtax per year and operate it in a straightforward manner like the Croatians but unfortunately not so. Really annoying.
From what I have heard, this now seems to be the procedure for Categorisations held in the name of the private owner/ non-resident -
You have to do the following:
• Apply for a VAT number
• Open a Ziro Racun business bank account
• You need to employ the services of an accountant who should submit monthly VAT returns.
• You can include expenses in the VAT return (water, electricity, pool maintenance, garden, management etc invoices)
• You have to prove that you pay health insurance in your home country , otherwise you have to pay that here
• For each and every booking you (or the accountant) has to issue an invoice which includes your name, address, VAT number, date of issue (including the time, hour and minute) and the person who raised the invoice. Has to include the name of the lead guest, dates of stay, rental price, vat rate, tourist tax.
• Payment should always be by bank transfer. You cannot accept cash payments, or at least if you want to accept cash payments then you have to have a specific 'fiscalisation' apparatus which links you via internet to the tax office and you will be issued with an identification number for the cash receipt.
• You can accept rental payments in your account in your home country and transfer them over to your Ziro Racun here.
• At the end of the year, your personal tax is calculated as follows. Your rental income is subject to 2,600 kune per month tax free, so for the year you can deduct a total of 31,200 kune (if your categorisation is for 6 summer months only they this is 50% less). Tax is then as follows:
Up to 26,400 kune - 12%
Between 26,400 and 158,400 kune - 25%
Over 158,000 - 40%
This is what I understand as of now and am sharing the information here but as we all know, please don't quote me 100% as things change in Croatia depending on who you speak to and when.
If anyone else can shed further light on the subject, that would be great.